In 2012 'Maintaining and improving infrastructure' is cited as the most important issue in the Australian water sector |
Desalination, pricing and regulation
In the past five years, significant investments have been made in desalination plants in coastal areas around the country. It is concerning, then, that 67% of those surveyed believe such investment has been not very, or not at all, cost-effective. Delving deeper into this issue, a majority believe the construction of desalination plants was timely, but 29% believe the plants were too large or costly. A further 30% believe their construction was ill-advised or occurred too soon.
That said, 69% of respondents believe water prices are about right or too low. Only 22% believe they are too high, although many also feel it is important to respond to community concern over the rising price of water (an issue that was not mentioned at all in 2010). The idea of increasing water prices when water is scarce is supported by 42% of respondents, while 53% believe this approach would not be beneficial.
One notion that appears to have strong support within the industry is that of a more 'light-handed' approach to regulation, an idea recently put forward by the Productivity Commission. Around 68% of survey respondents would prefer regulators to review prices periodically to ensure monopoly power is not abused, compared to 14% who believe economic regulators should set prices.
So what does all this mean?
This report acknowledges that there continue to be challenges ahead. Pressure on the sector as a result of the economic downturn, community expectations on standards and 'value' from their water authorities and uncertainty associated with climate change are but a few. Importantly however, the survey reveals a water industry that is confident of its capabilities and achievements, as well as mindful of the legitimate needs of its stakeholders.
Above all, the survey reinforces that, for a resource so fundamental to life and prosperity, the sustainable management of water is a very complex thing indeed. It's a story that water professionals understand only too well; and which our communities are now beginning to appreciate.
Author's note: Tom Mollenkopf is the chief executive of the Australian Water Association (AWA). The State of the Water Sector report is available on the AWA website at www.awa.asn.au/State_of_the_Water_Sector_Survey.